Odd-lot Trading Matching Time to Shorten from 5 Seconds to 1 Second, Effective July Next Year

(CNA Taipei, July 8) The Financial Supervisory Commission (FSC) continues to review market trading systems. Legislators have inquired whether the matching time for odd-lot trading can be shortened from 5 seconds to 1 second. Lin Hsiu-ming, Chairman of the Taiwan Stock Exchange (TWSE), stated today that considering factors such as brokerage system stability, the plan is to shorten the matching time for odd-lot trading from the current 5 seconds to 1 second, with implementation expected in July next year.

The Legislative Yuan's Finance Committee reviewed the FSC-supervised Central Deposit Insurance Corporation, Financial Supervision and Management Fund, and Insurance Business Development Fund today, and invited FSC Chairman Peng Chin-lung to attend the briefing. Democratic Progressive Party Legislator Li Kun-cheng expressed concern about the progress of odd-lot trading enhancements and asked if the matching time for odd-lot trading could be further shortened.

Lin Hsiu-ming stated that the current opening time for odd-lot trading is 9:10 AM, and it is planned to be moved forward to 9:00 AM, with implementation before the end of this year. As for the plan to shorten the odd-lot trading matching time from 5 seconds to 1 second, it is scheduled for implementation in July next year.

Li Kun-cheng further inquired if the implementation time could be advanced. Lin Hsiu-ming pointed out that when implementing new systems, the primary consideration is brokerage system stability. The current plan is for July next year, and whether it can be implemented earlier depends on the brokerages, not solely on the TWSE's decision.

The FSC previously stated in a written report that to provide small investors with diverse channels to participate in the capital market, the intraday odd-lot trading system was implemented in 2020. Since its implementation, both trading volume and transaction value have grown significantly. To further enhance the liquidity and trading efficiency of the odd-lot market, the interval for batch auction matching has been adjusted in recent years, shortening from 3 minutes to 1 minute in 2022, and from 1 minute to 5 seconds in 2024. (Editor: Lin Shu-yuan) 1150708

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